Contribution center. A manufacturer's raw-material purchasing department would likely be classified as a cost center.
A cost centre is a company department to which costs can be allocated. When the manager and employees, the word encompasses departments that do not directly generate but incur costs to the firm.
A cost center is a function within a business that does not directly contribute to profit but nevertheless costs money to operate, such as the accounting, human resources, or information technology departments. A cost center's primary function is to track actual spending for comparison to budget.
A cost center is a department or function within an organization that does not immediately contribute to profit but nonetheless costs money to run. Cost centers only indirectly contribute to a company's profitability, but profit centers contribute directly to profitability.
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